Chances are that where you own a flat in Ilkeston you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you increased control over the value of your Ilkeston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a conversion apartment in Ilkeston being sold with a lease of a little over 59 years unexpired. Teddy on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were approached by Mr G Bennett who, having took over the lease of a newly refurbished apartment in Ilkeston in March 2008. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Ilkeston with a long lease were worth £240,600. The average amount of ground rent was £60 invoiced yearly. The lease elapsed on 9 August 2088. Taking into account 62 years left we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.
In 2010 we were phoned by Mr and Mrs. K López who, having owned a basement flat in Ilkeston in September 2011. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Ilkeston with an extended lease were worth £174,200. The average ground rent payable was £55 billed per annum. The lease concluded on 21 March 2077. Considering the 51 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.